What The New Flat Rate State Pension Means for You

TaxAgility Accountants London_PensionThe government has proposed the introduction of a simple, single-tier flat rate state pension in the hope of removing complex elements out of the current State Pension system and encouraging a greater number of people to save for retirement.

According to The Department for Work and Pensions, in the new system – which incorporates a merger of the basic state pension with the state second pension – the single-tier pension is expected to be worth approximately £145.40 per week for a single pensioner, compared to the current state pension of £110.00 per week (alongside means-tested top-ups).

The Pensions Bill, which contains the provisions to bring forward the flat rate state pension as part of the State Pension system, was introduced to the House of Commons in May of this year, and is currently going through parliament.

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